Stocks are spiraling today, after news of China's retaliatory tariffs sparked a tweetstorm from U.S. President Donald Trump. Among individual names making notable moves are retailers Foot Locker, Inc. (NYSE:FL) and Macy's Inc (NYSE:M). Here's a quick look at what's moving the shares of FL and M.
Foot Locker Options Hot After Earnings Whiff
Foot Locker stock is down 16.9% at $34.86 -- fresh off a 21-month low of $34.41 -- after the athletic apparel retailer reported second-quarter profit of 66 cents per share on $1.774 billion in revenue, less than analysts were expecting. Same-store sales also came up short over the three-month period, while CFRA slashed its FL price target by $12 to $38.
Foot Locker's earnings reaction has sparked a sector-wide sell-off, but options traders are calling a bottom for the shares. Amid accelerated volume -- 31,000 puts have traded so far, 10 times what's typically seen at this point -- sell-to-open activity has been detected at the September 31 put. If this is the case, put writers expect the stock to stay above $31 through September options expiration.
Macy's Stock Downgraded at Guggenheim
Guggenheim downgraded Macy's stock to "neutral" from "buy," and removed its price target of $20 -- expressing a preference for Nike (NKE) in the retail space. M shares are down 3.4% at $15.03, earlier tagging a nine-year low of $14.95.
It's been a rough stretch for the equity, which is headed for its fourth straight weekly loss, and its biggest one-month loss since November 2008, down 34% so far in August. Against this backdrop, there's plenty of skepticism priced into the retail stock. While a healthy 13% of its float is sold short, 100% of covering analysts maintain a "hold" or worse rating.